Post demonetisation, the country has been facing an acute shortage of liquid cash. This has sent a wave of panic across the businesses and households in the country. A debate on whether banking penetration and ATM reach are enough for the country’s huge population has emerged. As per government reports, banking penetration in the country is only 58.7 per cent. According to the World Bank Statistics, the number of ATMs per 100,000 adults in India was only 18.07 in 2014 compared to the global average of 43.9. Along with the objective of fighting black money, the government alleges demonetisation as a step towards less cash society. But the financial institutions in the country are not developed to meet the needs of a less cash society, as shown by the above statistics.
The government argues that by moving the informal economy into the formal economy, more transactions will be reported that can lead to a spurt in the country’s GDP. Earlier, it was expected that a favourable monsoon and the implementation of the Seventh Pay Commission would push the consumption demand, which would be reflected in the GDP of the country. But demonetisation has negatively affected consumer sentiments that can have an adverse effect on the GDP growth of the country.
CPPR–Centre for Comparative Studies in association with Centre for Economy Development and Law of Government Law College, Thrissur, are organising a seminar to explore the different issues and avenues of demonetisation.
The seminar will look into the following concerns:
- Is demonetisation the best way to fight black money?
- Theoretical aspects of monetary systems and its legality
- Impact of demonetisation on economy
- Demonetisation – are we realistic in advocating a less cash economy?
- Demonetisation and political economy
- NR Bhanumurthy – (Professor, National Institute of Public Finance andPolicy)
- PR Devi Prasad, IES – Joining through Skype
- Jomon K George , FCA- Partner, JVR Associates